Europe says fertilizer supplies stable despite global price spike

The Iran war has raised global concerns over potential fertilizer shortages and their impact on food production. With roughly a third of the world’s seaborne fertilizer trade passing through the Strait of Hormuz, its closure has driven up the price of urea—a nitrogen fertilizer derived from petroleum products and widely used worldwide.

As of March 27, the price had surged to $684 per ton, its highest level since 2022 and a 70% increase since the start of the year. Coming just ahead of the spring sowing season in the northern hemisphere, this spike has raised concerns about potential yield declines due to limited fertilizer availability.

While the threat affects nearly all agricultural sectors globally, the situation in Europe appears more complex.

This was reflected in a statement released earlier this month by Fertilizers Europe, which represents “the majority of mineral fertilizer manufacturers in the EU,” according to its website.

While acknowledging that the war has “implications for global energy markets and fertilizer supply chains,” the group said that, for now, the EU has enough reserves to absorb potential shocks.

“There are currently no issues with the availability of fertilizers on the EU market given the relatively high production output of European producers and the very high import levels in Q4 2025,” the statement said.

It is estimated that around half of the global population relies on crops grown with artificial fertilizers. Although plants can grow without them, an article by Euronews points out, that modern industrial agriculture depends on these inputs for efficiency and scale.

At the same time, natural gas prices have risen sharply. Europe’s benchmark gas price, the TTF (Title Transfer Facility), climbed from around €32 to nearly €52 per megawatt-hour within just a few weeks. According to the outlet, this is particularly significant because natural gas accounts for about 80% of the production costs of nitrogen-based fertilizers.

Experts note that the current situation is not yet comparable to the extreme levels seen during the 2022 energy crisis that erupted in the aftermath of the launch of Russian attacks against Ukraine, when urea prices sometimes exceeded €1,000 per tonne. Retailers say supplies for the current season remain largely secure. However, the main challenge at present lies less in availability and more in logistics, as retailers and transporters struggle to keep up with processing demand.

By Nazrin Sadigova